VAT is Killing my Business!

Discussion in 'Accounts & Finance' started by HD123, Feb 26, 2019.

  1. DWS

    DWS UKBF Regular Free Member

    107 13
    Supplies will not cost less it just means you can claim back the VAT element when you do your VAT return rather than having to wait until your year end.
     
    Posted: Feb 28, 2019 By: DWS Member since: Oct 26, 2018
    #41
  2. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,996 1,066
    VAT is great. It's like the government are giving me an interest free loan. I take thousands and thousands of pounds of the VAT man's money, and get to keep it for up to 3 months until he asks me to tell him how much I've collected, and then send it to him. The rest of the time I can do whatever I like with the money.
     
    Posted: Feb 28, 2019 By: AllUpHere Member since: Jun 30, 2014
    #42
  3. paulears

    paulears UKBF Big Shot Full Member

    3,903 970
    Or like today when I discovered they hadn't actually collected last years VAT - which was still sitting in the account, and they asked if would mind paying it manually, as the system says I currently owe zero, but the record they have of them taking the money was actually an error?
     
    Posted: Feb 28, 2019 By: paulears Member since: Jan 7, 2015
    #43
  4. SteLacca

    SteLacca UKBF Ace Free Member

    1,389 271
    The OP states that there is "Very little" on which VAT can be claimed, leading me to think that this is probably a limited costs trader, who would get stuck with the 16.5% VAT rate anyway. Not much advantage to FRS in those circumstances.
     
    Posted: Feb 28, 2019 By: SteLacca Member since: Jun 16, 2016
    #44
  5. dan19900

    dan19900 UKBF Regular Free Member

    237 43
    No good trading just above the threshold, either need to go way past it (probably 150k+) or stay under. I'd just deregister, put your prices up a little so that you don't have to turn customers away then if you're still doing well with slightly higher prices and start having to turn customers away again in a year or so you can consider registering again.
     
    Posted: Mar 1, 2019 By: dan19900 Member since: Mar 2, 2018
    #45
  6. Inva

    Inva UKBF Regular Free Member

    369 62
    I also find it hard to believe that just by adding VAT your business is failing. Maybe you mean you're not earning as much as you'd like?
     
    Posted: Mar 1, 2019 By: Inva Member since: Aug 10, 2018
    #46